HIRE PURCHASE Meaning and
Definition
-
Hire purchase, also known as installment buying or deferred payment plan, refers to a financial arrangement commonly used for purchasing expensive goods, equipment, or vehicles. It is a method of payment where the buyer acquires the item by paying regular installments over time instead of making a lump sum payment upfront.
In a hire purchase agreement, the buyer agrees to pay a fixed amount of money, typically including interest, over an agreed period of time. The buyer gains immediate possession and use of the item while making the payments. However, the legal ownership of the item remains with the seller until the final installment is paid. Once the final payment is made, ownership is transferred to the buyer.
The time period for hire purchase agreements can vary, generally ranging from several months to several years, depending on the nature of the item and the terms agreed upon. Interest rates in hire purchase agreements may be fixed or variable and can be influenced by factors such as the buyer's creditworthiness.
This method of purchase is often used for big-ticket items such as cars, household appliances, or furniture, as it allows individuals or businesses to acquire goods without having to make a large initial payment. Hire purchase can provide flexibility in managing finances but may come with higher overall costs due to interest charges. It allows people to spread out their payments and make the item more affordable in the short term.
Common Misspellings for HIRE PURCHASE
- gire purchase
- bire purchase
- nire purchase
- jire purchase
- uire purchase
- yire purchase
- hure purchase
- hjre purchase
- hkre purchase
- hore purchase
- h9re purchase
- h8re purchase
- hiee purchase
- hide purchase
- hife purchase
- hite purchase
- hi5e purchase
- hi4e purchase
- hirw purchase
- hirs purchase
Etymology of HIRE PURCHASE
The term "hire purchase" originated in the United Kingdom in the late 19th century. It is a combination of two separate words - "hire" and "purchase".
The word "hire" has its roots in Old English, where it referred to the act of renting or employing someone or something. It later evolved to also mean the act of granting the temporary use of goods in exchange for payment.
The word "purchase" comes from Old French and has its roots in the Latin word "purchasare", which means to seek or pursue. In English, "purchase" refers to the act of buying or acquiring something in exchange for money.
When these two words were combined, "hire purchase" was used to describe a system of payment where someone could acquire goods by paying for them in installments over a period of time.
Idioms with the word HIRE PURCHASE
-
hire purchase
The term "hire purchase" refers to a financial agreement in which a consumer purchases a product or item by paying installments over a specified period. The buyer gains immediate use of the item but does not gain ownership until the final payment is made. It allows individuals to acquire goods without making an upfront payment, spreading the total cost over time.
Similar spelling words for HIRE PURCHASE
- on hire-purchase,
- hire-purchase finance,
- hire-purchase agreement,
- hire-purchase, never-never,
- hire-purchase company,
- hire-purchase credit.
Infographic
Add the infographic to your website:
